Technology and Business

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20 Νοε 2013 (πριν από 3 χρόνια και 6 μήνες)

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Technology and Business

Henry C. Co

Technology and Operations Management,

California Polytechnic and State University

Outline

1.
Invention, Innovation, and Diffusion

2.
Types of Innovation

3.
Diffusion of Technology

4.
Market Pull v. Technology Push

5.
Disruptive v. Sustaining Technology

6.
What is e
-
Business?

Introduction (Henry C. Co)

2

Invention, Innovation, and Diffusion


Idea Generation + Problem
-
Solving


Invention.


Invention + Implementation


Innovation.


12
-
20% of inventions results in successful innovation.


Innovation + Diffusion


Economic Value.


Who invented the vacuum cleaner?





Click on picture to learn
about the history of the
vacuum cleaner.





Click on picture to read
more about Hoover.

Who invented the sewing machine?

Click on picture to find out
the answer.

Who invented the telegraph?

Invention, Innovation, and
Diffusion

Invention to Innovation (commercialization)


Innovation to wide
-
spread use (diffusion)

Introduction (Henry C. Co)

7

Innovation vs. Invention


Vacuum Cleaner


Inventor


J Murray Spengler


Marketer


W H Hoover


Windows


Inventor


Xerox


Marketer


Apple



MS
-
DOS


Inventor


Tim Paterson


Marketer


Bill Gates


Sewing Machine


Inventor


Elias Howe


Marketer


Isaac Singer


Introduction (Henry C. Co)

8

Types of Innovation


Product Innovation


In the way things (products/services) are offered


Process Innovation


In the way in which they are created or delivered


Diffusion of Technology

When was the Internet invented?






When was
fax

technology invented?


What was the purpose of the fax machine?


Why did it take so long for the fax machine to diffuse?


Why has the fax machine been so successful lately?


Introduction (Henry C. Co)

11

What are some characteristics
that help explain success and
failure of innovations?

1.
Relative
advantage

2.
Compatibility

3.
Complexity

4.
Trialability


5.
Observability


Very slow


Hand operated telegraph
and telephone system


Missing network or critical
mass.


Faster and cheaper to fax
than to mail a letter
(especially overnight).


More reliable to fax than to
mail.


Clearer message than phone
call


Leaves paper trail.


More convenient than phone
call given different time
zones.


In the Beginning

Later …

Relative Advantage

Introduction (Henry C. Co)

13


Stand alone invention in
systemic technology


Compatible with
telegraphs (cumbersome)


Telegraphs not as widely
spread as phones later.


Compatible with copiers


Compatible with phones


Compatible with
scanners.


In the Beginning

Later …

Compatibility

Introduction (Henry C. Co)

14


Assistance needed


Transmission by
telegraph or radio
-
wave.


As easy to use as the
phone


As easy to use as a
photocopier.

In the Beginning

Later ...

Complexity

Introduction (Henry C. Co)

15


Very expensive to adopt


User has to be convinced
of adopting the fax
machine before investing
so much money


No critical mass to try out
using the fax machine.


Rent, try, buy


Special trial offers
(supported by phone
companies)


Gifts to certain groups
(schools, universities).


In the Beginning

Later ...

Trialability

Introduction (Henry C. Co)

16


Hardly anybody used it,
no observation possible.


Early adopters spread the
use


Students learn about it in
schools


Everybody has it
(business cards).

In the Beginning

Later ...

Observability

Introduction (Henry C. Co)

17


Mass media


Beginning: no


Later: yes


From expensive office
equipment to personal
home use equipment
marketed everywhere.


Face
-
to
-
face contact: yes.


What is your fax number?

In the Beginning

Later ...

Communication Channels

Introduction (Henry C. Co)

18

Market Pull v. Technology Push


Market Pull


Market needs create new product
opportunities which in turn stimulate R&D to determine if
a solution is possible


Technology Push


New discovery triggering a sequence
of events



Disruptive v. Sustaining Technology

The slope of technological trajectory is steeper than the slope of the
trajectories of customer need.

Introduction (Henry C. Co)

20

What is e
-
Business?


If you were asked to define business using a single word,
what would it be?

E
-
business is not e
-
commerce

Andrew
Bartel
, vice president and research leader of e
-
commerce trends
Giga Information Group, Inc.


EC1: Enterprise Management

Product Development

Logistics and Supply-Chain
Support

Human Resource Mgmt.

Training and Conferencing

Manufacturing Mgmt.

Accounting

Financial Planning
EC5: Linking with Suppliers

Product
Sourcing

Product Information Collection

Purchase Process Mgmt.

Supplier Mgmt.

Account Payable Mgmt.
EC4: Linking with Distributors
/Retailers

Market Response

Inventory Replenishment

Product Information
Distribution

Order Fulfillment

Account Receivable Mgmt.

Parts Services and Contract
Mgmt.
EC3: Interface
with
Consumers

Web Marketing

E Shopping

Information &On-Line Services

Entertainment on Demand

Trading in E Markets

Customer Services & Sales
Mgmt.

Market Intelligence, Consumer
Information Gathering

Security

Digital Payment

E. Banking

Legal Issues

E. Market Formation

Human/Computer Interface

National/Global Information
Infrastructure
EC2: Global EC Infrastructure

Source: E
-
Commerce:
State of the Art (Shaw)

Enterprise
Intranet
Electronic
Storefront
Information
Dissemination
Customer
Services
Business
Intelligence
Internet
Extranet
Logistics
Provider
Distributors
Suppliers
Financial
Srvices

Knowledge
Management

Internal
Communication

Project
Management

Source: E
-
Commerce: State of the Art (Shaw)

… has been around for years!


EDI: B2B exchange of standardized documents in
electronic form (e.g., Invoice, Purchase order)


CIM, MRP
-
II, etc.

Introduction (Henry C. Co)

25

Why Now?


Computers are faster


1970: 1 million instructions/sec


2000: 1 billion instructions/sec


Have more main memory


1970: 0.125 megabytes


2000: 512.0 megabytes


Cost less


1970: $4,000,000


2000: $2,000


Speed/size/cost improvement
factor: 4 billion


Have more disk storage


1970: 10 MB


2000: 30,000 MB (soon 1
terabyte = 1000GB)


Introduction (Henry C. Co)

26

Source: Michael
Shamos

(
shamos
+@
cs.cmu.edu
)

32
-
Volume New Encyclopedia
Britannica



1200 bps modem …………..28 days


9600 bps modem ……….....3.5 days


28.8 kb modem …………...28 hours


Basic Rate ISDN …..……..6.3 hours


T
-
1 line …….……….…..31 minutes


T
-
3 line …..…….…………1 minute


Optical Fiber (OC
-
3) …...17 seconds


Optical Fiber (OC
-
12) ....4.7 seconds


Optical Fiber (new technology)


0.005 seconds


Introduction (Henry C. Co)

27

Still …

there are many obstacles


Technological Barriers

Business Barriers

Legal and Educational Barriers

Introduction (Henry C. Co)

28

Technological Barriers


Strength of security


Payment instruments


Lack of reliable network services


Lack of standards


Public key infrastructure for encryption


Integration with existing applications


Bandwidth costs




Introduction (Henry C. Co)

29

Business Barriers


Lack of business process integration


Not enough proven business models


Unpredictable cost justification


Corporate structures as barriers to change


Not enough qualified individuals


Channel conflict on
-
line or off
-
line


IT management vs. business management




Introduction (Henry C. Co)

30

Legal and Educational Barriers


Lack of consistent rules and policies


Customs and tax uncertainties


The role of governments and nations


Trust and privacy


Fraud


Awareness of services


E
-
money laundering


...

Introduction (Henry C. Co)

31

Precipitating Conditions


B2B use of EDI


The continued decrease in the costs of computer
hardware and software


The disappearance of the NSF AUP prohibiting
commercial activities on the net


The rapid growth of the web (the third wave)


The rise of the profitable ISP

Introduction (Henry C. Co)

32


Information flows


Internal and external
processes


Relationships


Power


Quality products


Excellent service


Cost effective delivery


Valued relationship


e
-
Business Changes …

BUT, not the need for …

Introduction (Henry C. Co)

33